SIE STC USA Greenlight Exam 1 Graded
A+ LatesAt 2025/2026
Which of the following statement is NOT TRUE regarding the Uniform Gifts to Minors Act?
A. only one custodian is allowed for each account
B. The minor is responsible for all taxes due on dividends and interest received from securities
held in the account
C. only an adult may be a custodian
D. securities must be held in the name of the brokerage form - CORRECT ANSWER: D
All of the choices regarding the Uniform Gift to Minors Act are true EXCEPT securities must be
held in the name of the brokerage firm (Street name). All securities are registered in the name
of the custodian for the minor.
A limited partner would be in jeopardy of losing her limited liability if the partner:
A. Received a portion of the project's income and deductions
B. assisted in the decision of which properties to acquire
C. insisted on examining the partnership's financial records
D. made a loan to the partnership - CORRECT ANSWER: B
Limited partners have the right to receive their portion of income and losses, examine books
and records, and make loans to the partnership. If they get involved in the management of
the program, such as deciding which properties to acquire, they could be considered general
partners and lose their limited liability.
Which of the following is NOT a type of unsystematic risk?
A. Political Risk
B. Business risk
C. Credit risk
D. Market risk - CORRECT ANSWER: D
,Market risk is a form of systematic risk and cannot be avoided by securities investor. For
example, if the overall stock market is declining, it will negatively affect all of the stocks in the
market. Conversely, unsystematic risk is able to be reduced through appropriate diversification.
A registered person has received a gift that's valued at $150 from the FINRA member firm
through which her firm clears trades. This gift is considered:
A. Excessive
B. Acceptable, but only it it's documented by the gifting firm
C. Acceptable, but only if it's documented by the receiving firm
D. Acceptable - CORRECT ANSWER: A
If an associated person of a member firm provides a gift that exceeds $100 from another FINRA
member firm, it's unacceptable and a violation of FINRA rules.
Three-month and six-month Treasury bills are auctioned by the Federal Reserve Board:
A. Daily
B. Weekly
C. Monthly
D. Annually - CORRECT ANSWER: B
Three-month and six-month Treasury Bills are sold at public auctions each Monday.
An uncle would like to invest for his nephew's college education. Which of the following factors
is a benefit of a 529 plan?
A. Uniformity of state taxation
B. Pretax contributions
C. Change of beneficiaries allowed
D. No limits on contributions - CORRECT ANSWER: C
The owner of a 529 plan may change beneficiaries. Contributions are made on an after-tax
basis, and are based on state rules, which vary from state to state. Contributions are limited,
and vary by state.
A brokerage firm will generally distribute which of the following to employees of the firm?
,A. The restricted list
B. The watch list
C. A list of the mutual funds it recommends to customers
D. A list of the stocks in which it makes a market - CORRECT ANSWER: A
Restricted and watch lists include securities that employees are either restricted or prohibited
from trading, or issues that are subject to closer scrutiny by the brokerage firm. The restriction
or limitations associated with the lists apply to the employee transactions and to solicited
transactions with customers. The restricted list must be distributed to employees; however, the
content of the watch list is generally known only to selected members of the legal and
compliance departments.
Which of the following is the rate that commercial banks charge on loans to broker-dealers for
margin purposes?
A. Prime rate
B. discount rate
C. Federal funds rate
D. Call rate - CORRECT ANSWER: D
The call rate is what commercial banks charge on loans to broker-dealers for margin purposes.
The prime rate is the rate that commercial banks charge to their best corporate clients. The
discount rate is what the Federal Reserve charges when lending to member banks. The federal
funds rate is the rate charged on overnight loans between member banks.
An investor has a portfolio of bonds that yields 6%. Interest rates have been falling and most of
the bonds in the portfolio are due to mature which will force the investor to seek new bonds
at lower yields. This investor is experiencing:
A. Opportunity risk
B. Repayment risk
C. prepayment risk
D. Credit risk - CORRECT ANSWER: B
Reinvestment risk is the result of not being able to reinvest funds at the same rate after a bond
matures or is called. Opportunity risk it eh risk that the yield of a chosen investment will be less
that the yield of another investment that was not chose. When interest fall, mortgages
, may be refinanced and paid off early, resulting in prepayment risk for mortgage-backed securities.
Credit risk occurs when a bond issuer is unable to make payments of interest and principal.
A U.S. Treasury bill is sold in the secondary market on Thursday, March 14. It has a
regular-way settlement of:
A. Monday, March 18
B. Friday, March 15
C. Wednesday, March 20
D. Thursday, March 14 - CORRECT ANSWER: B
Secondary market trades in U.S. Government bonds, notes, and bills settle one business day
after the trade date.
The federal securities regulation that requires disclosure by issuers offering securities to the
public is:
A. the investment Advisors Act of 1940
B. The Securities Investor Protection Act of 1970
C. The Securities Exchange Act of 1934
D. The Securities Act of 1933 - CORRECT ANSWER: D
The main focus of the Securities Act of 1933 is the primary market where securities are sold by
issuers. The Act demands that investors be provided with full and fair disclosure by issuers of
securities so that they're able to make informed investment decisions. The Act also provides
specific rules for the conduct of both issuers and the investment bankers (underwriting firms) that
assist issuers in raising capital.
Under what circumstances may a husband and wife both be custodians in one minor's account?
A. Under no circumstances
B. If the minor gives written consent
C. If the husband and the wife both agree
D. If the account has a market value of at least $15,000 - CORRECT ANSWER: A
A+ LatesAt 2025/2026
Which of the following statement is NOT TRUE regarding the Uniform Gifts to Minors Act?
A. only one custodian is allowed for each account
B. The minor is responsible for all taxes due on dividends and interest received from securities
held in the account
C. only an adult may be a custodian
D. securities must be held in the name of the brokerage form - CORRECT ANSWER: D
All of the choices regarding the Uniform Gift to Minors Act are true EXCEPT securities must be
held in the name of the brokerage firm (Street name). All securities are registered in the name
of the custodian for the minor.
A limited partner would be in jeopardy of losing her limited liability if the partner:
A. Received a portion of the project's income and deductions
B. assisted in the decision of which properties to acquire
C. insisted on examining the partnership's financial records
D. made a loan to the partnership - CORRECT ANSWER: B
Limited partners have the right to receive their portion of income and losses, examine books
and records, and make loans to the partnership. If they get involved in the management of
the program, such as deciding which properties to acquire, they could be considered general
partners and lose their limited liability.
Which of the following is NOT a type of unsystematic risk?
A. Political Risk
B. Business risk
C. Credit risk
D. Market risk - CORRECT ANSWER: D
,Market risk is a form of systematic risk and cannot be avoided by securities investor. For
example, if the overall stock market is declining, it will negatively affect all of the stocks in the
market. Conversely, unsystematic risk is able to be reduced through appropriate diversification.
A registered person has received a gift that's valued at $150 from the FINRA member firm
through which her firm clears trades. This gift is considered:
A. Excessive
B. Acceptable, but only it it's documented by the gifting firm
C. Acceptable, but only if it's documented by the receiving firm
D. Acceptable - CORRECT ANSWER: A
If an associated person of a member firm provides a gift that exceeds $100 from another FINRA
member firm, it's unacceptable and a violation of FINRA rules.
Three-month and six-month Treasury bills are auctioned by the Federal Reserve Board:
A. Daily
B. Weekly
C. Monthly
D. Annually - CORRECT ANSWER: B
Three-month and six-month Treasury Bills are sold at public auctions each Monday.
An uncle would like to invest for his nephew's college education. Which of the following factors
is a benefit of a 529 plan?
A. Uniformity of state taxation
B. Pretax contributions
C. Change of beneficiaries allowed
D. No limits on contributions - CORRECT ANSWER: C
The owner of a 529 plan may change beneficiaries. Contributions are made on an after-tax
basis, and are based on state rules, which vary from state to state. Contributions are limited,
and vary by state.
A brokerage firm will generally distribute which of the following to employees of the firm?
,A. The restricted list
B. The watch list
C. A list of the mutual funds it recommends to customers
D. A list of the stocks in which it makes a market - CORRECT ANSWER: A
Restricted and watch lists include securities that employees are either restricted or prohibited
from trading, or issues that are subject to closer scrutiny by the brokerage firm. The restriction
or limitations associated with the lists apply to the employee transactions and to solicited
transactions with customers. The restricted list must be distributed to employees; however, the
content of the watch list is generally known only to selected members of the legal and
compliance departments.
Which of the following is the rate that commercial banks charge on loans to broker-dealers for
margin purposes?
A. Prime rate
B. discount rate
C. Federal funds rate
D. Call rate - CORRECT ANSWER: D
The call rate is what commercial banks charge on loans to broker-dealers for margin purposes.
The prime rate is the rate that commercial banks charge to their best corporate clients. The
discount rate is what the Federal Reserve charges when lending to member banks. The federal
funds rate is the rate charged on overnight loans between member banks.
An investor has a portfolio of bonds that yields 6%. Interest rates have been falling and most of
the bonds in the portfolio are due to mature which will force the investor to seek new bonds
at lower yields. This investor is experiencing:
A. Opportunity risk
B. Repayment risk
C. prepayment risk
D. Credit risk - CORRECT ANSWER: B
Reinvestment risk is the result of not being able to reinvest funds at the same rate after a bond
matures or is called. Opportunity risk it eh risk that the yield of a chosen investment will be less
that the yield of another investment that was not chose. When interest fall, mortgages
, may be refinanced and paid off early, resulting in prepayment risk for mortgage-backed securities.
Credit risk occurs when a bond issuer is unable to make payments of interest and principal.
A U.S. Treasury bill is sold in the secondary market on Thursday, March 14. It has a
regular-way settlement of:
A. Monday, March 18
B. Friday, March 15
C. Wednesday, March 20
D. Thursday, March 14 - CORRECT ANSWER: B
Secondary market trades in U.S. Government bonds, notes, and bills settle one business day
after the trade date.
The federal securities regulation that requires disclosure by issuers offering securities to the
public is:
A. the investment Advisors Act of 1940
B. The Securities Investor Protection Act of 1970
C. The Securities Exchange Act of 1934
D. The Securities Act of 1933 - CORRECT ANSWER: D
The main focus of the Securities Act of 1933 is the primary market where securities are sold by
issuers. The Act demands that investors be provided with full and fair disclosure by issuers of
securities so that they're able to make informed investment decisions. The Act also provides
specific rules for the conduct of both issuers and the investment bankers (underwriting firms) that
assist issuers in raising capital.
Under what circumstances may a husband and wife both be custodians in one minor's account?
A. Under no circumstances
B. If the minor gives written consent
C. If the husband and the wife both agree
D. If the account has a market value of at least $15,000 - CORRECT ANSWER: A
